Knowing top challenges in e-commerce delivery management is fundamental for businesses. If the e-retailer promises the customer that the package will arrive in 2 days and he finally receives it after 5, that’s a problem. Indeed, the buyer will become impatient, he or she will perhaps contact customer service, who will not necessarily be able to help because the package will at that time be in the hands of the carrier, on which the seller does not always have optimal visibility in real time.
The buyer will surely be disappointed, will no longer purchase from this online store and if he or she is really angry, he could even leave a comment online recounting his/her bad experience with e-commerce. This will have a major impact on future sales, especially if comments like this multiply due to a faulty logistics system.
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Top Challenges in E-commerce Delivery Management
To avoid these kinds of small problems which can quickly turn into a snowball effect, you must try to anticipate as much as possible. If you promised to make a delivery in 2 days but you already know that this delivery will be longer and that it will instead be delivered in 5 days, take the bull by the horns and contact the customer as quickly as possible. In this type of case, anticipating the delivery problem by apologizing in advance for the inconvenience caused and making a commercial gesture to make amends can help enormously.
The best-known e-retailer that frequently uses this technique is the giant Amazon, which is an expert in this area. It creates expectations below the real capabilities and skills of its logistics service to appear as efficient as possible in the eyes of these consumers.
For example, the delivery service will give a delivery time of 5 days, but the customer will receive their package after the fourth. This allows you to cover your back if there is ever a small setback in the supply chain, and at the same time, this method pleasantly surprises the consumer if they receive it before the expected date.
Delivery for E-commerce, No Mistakes Allowed
And therefore, in e-commerce logistics there are no mincing words: deliveries must be precise and punctual, you can’t go wrong. Also because making mistakes means managing the error: therefore work that is self-generated and which creates inefficiencies in the supply chain. In other words, the game is played in the management and delivery of the goods, which must leave the warehouse correctly and precisely and arrive at their destination safely and on time.
Logistics, E-commerce, and Multi-Channel
A functioning e-commerce delivery management software, therefore, must provide omni channel functionality. It is the customer who decides whether to have the ordered goods delivered to his/her home. In this case, the delivery must not fail and must be timely (especially for food). Therefore, with omnichannel, the company puts the customer at the center and finds in its various channels the ways to best serve and follow it by coordinating and adapting its internal structure.
The Importance of Logistics for E-commerce
But to achieve everything just described, what should a company that wants to enter e-commerce do? It has been seen that the future of e-commerce involves a refinement of deliveries that not all companies, if only due to their size, will be able to afford. The real challenge, however, is maintaining what was declared at the time of purchase: the promise made to the consumer must be respected.
Therefore, to approach e-commerce, first of all, it is very likely that the supply chain must be redesigned in its various aspects: behind the e-commerce platform, behind the user interface, there is logistics, starting with the warehouse one. When it comes to e-commerce, the critical issues in the warehouse are mainly picking and packaging, therefore, it is necessary to review these functions, and optimizing them with the right investments.
The second step concerns the relationship with the couriers, with whom one must interface and integrate in an unprecedented way. With e-commerce, couriers take on a new role, they are those who represent the company at the time of delivery, those who put their “face” into it.
Therefore, when it comes to e-commerce, we must start from a premise: the number of references or their type does not matter, the sector in which the company operates does not matter, nor does its turnover or size: what makes the difference is the architecture of the management system.
In this sense, there is no one-size-fits-all solution for all companies, but there are tailor-made solutions that allow you to organize yourself so that the end customer can access any touch point, can choose how to do their shopping and where to collect the goods: if the delivery is precise, punctual, and in line with the customer’s expectations, the consumer’s feedback will be positive.
Choose a Trusted Partner for Deliveries
Nowadays, many logistics providers are taking up the challenge of offering ever more qualitative delivery. The first reflex you must have when choosing the latter is to take your time to choose it.
Indeed, you must take into account that this external company will be responsible for delivering your products and therefore will represent your company, but also and above all it will be the one that will have the only direct contact with your customer. If you do not choose it carefully, the customer may remain on a bad note and maintain a negative image of your brand.
Since e-commerce delivery management is a complex and fundamental task, calling on the expertise of an e-logistics professional is essential. However, you must know how to choose your 3PL provider carefully for effective management.
Experience and seniority
E-commerce has experienced astonishing growth in recent years, and e-commerce logisticians have multiplied. However, not all of them are competent and honest service providers. To choose the right profile, you must above all, ensure that it enjoys a certain longevity and that it has experience in the field. These two factors are in fact, fundamental indicators of the quality of its services.
The Reputation of the Logistician
The reputation is evocative of the seriousness of an e-commerce logistician. To choose one, you must therefore ensure that the service provider has a good reputation in the industry. Looking at customer reviews on platforms is a good way to judge the reputation of a service provider.
The power of the information system
Before choosing an e-commerce delivery service provider, it is fundamental to check its strengths in terms of parcel traceability at each stage of the delivery chain.
The service provider’s methods
This criterion allows you to choose your e-commerce logistician on the basis of the guarantees offered in terms of returns policy and after-sales service.
With the quality of delivery being of great importance in e-commerce, it is essential that the logistician has the best modes of transport. The same goes for delivery methods, which must vary from standard to express, including home and out-of-home delivery.
Install Effective Return Management
Given the importance that customers attach to it, the question of returns management is central and the challenges are major for e-retailers. E-commerce logistics intervenes in particular to overcome misunderstandings between buyers and sellers. It helps businesses deliver efficient packaging and deliver on delivery promises to avoid a negative delivery experience.
Establish Effective Customer Service
E-logistics allows e-retailers to benefit from effective management of their customer service, through well-conducted after-sales service, for example. Contact persons are thus mobilized to respond to the customer’s concerns throughout the purchasing process. The company can hope for an increase in orders from satisfied customers.
Of course, all the strategies implemented within the framework of e-logistics allow e-commerce companies to develop their activities and increase their turnover. The challenge of e-commerce logistics is therefore significant.
Automation
From order fulfillment to emails with package tracking, automation is a strong and emerging trend in e-commerce, which represents a significant time saving for its stakeholders. If, as an e-commerce business, you’re planning to manage your delivery operations on your own, you can leverage Onro’s delivery management software to streamline operations effectively.
Onro offers comprehensive delivery management tools that automate various stages of delivery, from dispatch to tracking, making it easier for you to stay on top of your logistics without the need for manual intervention. With Onro, you can ensure that your customers receive timely updates on their orders while gaining full control over your deliveries, saving time and enhancing overall efficiency.
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Logistics Costs, a Budget to Take into Account
It is common for logistics-related costs to be greater than you anticipated, for various reasons (for example, a greater number of returns than expected). It is therefore to be expected that you will undoubtedly lose money on many of your shipments.
However, the advice we could give you is not to worry more than you should. Make no mistake: it’s fundamental to monitor your delivery costs to ensure that profits don’t go up in smoke. However, we must also remember that these expenses are part of e-commerce.
The objective that must therefore be kept in mind is to make the majority of deliveries profitable, without tormenting yourself over the small part of them in which you lost money.
Conclusion
So, we gained some crucial knowledge about the top challenges in e-commerce delivery management. To successfully carry out all of these actions simultaneously, it is therefore essential for e-retailers to have a well-established organization. One of the points to remember is to know how to correctly estimate the delivery time, so as not to create unpleasant surprises and dissatisfaction with consumers.
Furthermore, to ensure consistent transport and delivery, competent logistics partners or having a delivery management platform will need to be favored, always with the aim of maximum customer satisfaction, from the order on the merchant site to the delivery of the package.
